PRESS RELEASE

F5 Delivers 4% Revenue Growth on Continued Strong Software Demand in Third Quarter Fiscal Year 2020

Published July 27, 2020

For more information contact:

Investor Relations
Suzanne DuLong
(206) 272-7049
s.dulong@f5.com

Public Relations
Nathan Misner
(206) 272-7494
n.misner@F5.com

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F5 Delivers 4% Revenue Growth on Continued Strong Software Demand in Third Quarter Fiscal Year 2020

Generates Third Quarter GAAP EPS of $1.14 and non-GAAP EPS of $2.18 per diluted share

 

SEATTLE, WA —  F5 Networks, Inc. (NASDAQ: FFIV) today announced financial results for its fiscal second quarter ended June 30, 2020.

“Large enterprise customers are accelerating their digital transformations, increasing their digital engagement, and boosting capacity and security on customer facing applications and on platforms that enable employee collaboration,” said François Locoh-Donou, CEO and President of F5. “Demand for solutions to meet these immediate and long-term business requirements drove 4% GAAP and non-GAAP revenue growth, and 43% non-GAAP software revenue growth in our third quarter.”

“Customers continue to look to F5 to enable their mission-critical application needs and increasingly, are deploying a combination of F5 solutions spanning our F5, NGINX and Shape multi-cloud application services portfolio,” continued Locoh-Donou. “In a challenging COVID-19 environment, our deep incumbency and close alignment with customers' investment priorities are proving distinct competitive advantages and driving resiliency in our business.”

 

Third Quarter Performance Summary

Following its acquisition of Shape Security, to provide transparency to what F5 management believes reflects its ongoing business results, F5 is reporting both GAAP and non-GAAP revenue. Non-GAAP revenue excludes the impact of the purchase accounting write-down on Shape's assumed deferred revenue. F5 expects purchase accounting will impact Shape-related recognized revenue on a GAAP-basis principally over the four quarters following the transaction close in January 2020.

GAAP revenue of $583 million for the third quarter of fiscal year 2020 reflects 4% growth from $563 million in the third quarter of fiscal year 2019.

Non-GAAP revenue for the third quarter of fiscal year 2020 was $586 million, reflecting 4% growth in total revenue and 43% growth in software revenue in the year ago period.

GAAP net income for the third quarter of fiscal year 2020 was $70 million, or $1.14 per diluted share compared to third quarter fiscal year 2019 GAAP net income of $86 million, or $1.43 per diluted share.

Non-GAAP net income for the third quarter of fiscal year 2020 was $134 million, or $2.18 per diluted share, compared to $152 million, or $2.52 per diluted share, in the third quarter of fiscal year 2019. Non-GAAP net income for the third quarter of fiscal year 2020 excludes $51 million in stock-based compensation, $13 million in acquisition-related charges, $11 million in amortization of purchased intangible assets, and $3 million in facility-exit costs.

A reconciliation of revenue, net income, earnings per share, and other measures on a GAAP to non-GAAP basis is included in the attached Condensed Consolidated Income Statements. Additional information about non-GAAP financial information is included in this release.

 

Business Outlook

For the fourth quarter of fiscal year 2020 ending September 30, 2020, F5 expects to deliver both GAAP and non-GAAP revenue in the range of $595 million to $615 million with non-GAAP earnings in the range of $2.30 to $2.42 per diluted share.

All forward-looking non-GAAP measures included in the outlook exclude estimates for amortization of intangible assets, share-based compensation expenses, significant effects of tax legislation and judicial or administrative interpretation of tax regulations, including the impact of income tax reform, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of any future acquisitions or divestitures, acquisition-related charges and write-downs, restructuring charges, facility exit costs, or other non-recurring charges that may occur in the period. F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding U.S. generally accepted accounting principles or GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically varied and may continue to vary significantly from quarter to quarter.

 

Live Webcast and Conference Call

F5 will host a live webcast and conference call to review its financial results and outlook today, July 27, 2020, at 4:30 pm ET. The live webcast can be accessed from the investor relations portion of F5.com. To participate in the live call via telephone in the U.S. and Canada, dial (833) 714-0927. Outside the U.S. and Canada, dial +1 (778) 560-2886. Reference Meeting ID 8166352. Please call at least 5 minutes prior to the call start time. The webcast replay will be archived on the investor relations portion of F5's website.

 

Forward Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the continuing strength and momentum of F5's business, future financial performance, projected and target revenue and earnings ranges, income, earnings per share, share amounts and share price assumptions, share repurchases, demand for application delivery networking, application delivery services, security, and software products, expectations regarding future services and products, expectations regarding future customers, markets and the benefits of products, and other statements that are not historical facts and which are forward-looking statements. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors. Such forward-looking statements involve risks and uncertainties, as well as assumptions and other factors that, if they do not fully materialize or prove correct, could cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the impact of the COVID-19 global pandemic including but not limited to the advantages of incumbency in an uncertain environment, caution in spending patterns in the most severely impacted verticals, delays in orders in some impacted regions due to COVID-19 impacts; prolonged face-to-face sales engagement delaying some new strategic projects; customer acceptance of our new security, application delivery, optimization, and software and SaaS offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; F5 may not realize the financial and strategic goals that are contemplated through its acquisitions, including Shape and NGINX, and F5 may not successfully operate and integrate newly-acquired businesses appropriately or as expected; competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into F5's markets, and new product and marketing initiatives by our competitors; increased sales discounts; uncertain global economic conditions, including those related to COVID-19, which may result in reduced customer demand for our products and services and changes in customer payment patterns; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; litigation involving patents, intellectual property, shareholder and other matters, and governmental investigations; natural catastrophic events; F5's ability to sustain, develop and effectively utilize distribution relationships; F5's ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5's ability to expand in international markets; the unpredictability of F5's sales cycle; F5's share repurchase program; future prices of F5's common stock; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K and other documents that we may file or furnish from time to time, which could cause actual results, performance or achievements to vary from expectations. The financial information contained in this presentation should be read in conjunction with the consolidated financial statements and notes thereto included in F5's most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. All forward-looking statements in this presentation are based on information available as of the date hereof and qualified in their entirety by this cautionary statement. F5 assumes no obligation to revise or update these forward-looking statements.

 

GAAP to non-GAAP Reconciliation

F5's management evaluates and makes operating decisions using various operating measures. These measures are generally based on the revenues of its products, services operations, and certain costs of those operations, such as cost of revenues, research and development, sales and marketing and general and administrative expenses. One such measure is GAAP net income excluding, as applicable, stock-based compensation, amortization of purchased intangible assets, acquisition-related charges, net of taxes, restructuring charges, facility-exit costs, significant litigation and other contingencies and certain non-recurring tax expenses and benefits, which is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. This measure of non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that the company would accrue if it used non-GAAP results instead of GAAP results to calculate the company’s tax liability.

The non-GAAP adjustments, and F5's basis for excluding them from non-GAAP financial measures, are outlined below:

Acquisition-related write-downs of assumed deferred revenue. Included in its GAAP financial statements, F5 records acquisition-related write-downs of assumed deferred revenue to fair value, which results in lower recognized revenue over the term of the contract. F5 includes revenue associated with acquisition-related write-downs of assumed deferred revenue in its non-GAAP financial measures as management believes it provides a more accurate depiction of revenue arising from our strategic acquisitions.

Stock-based compensation. Stock-based compensation consists of expense for stock options, restricted stock, and employee stock purchases through the company's ESPP. Although stock-based compensation is an important aspect of the compensation of F5's employees and executives, management believes it is useful to exclude stock-based compensation expenses to better understand the long-term performance of the company's core business and to facilitate comparison of the company's results to those of peer companies.

Acquisition-related charges, net. F5 does not acquire businesses on a predictable cycle and the terms and scope of each transaction can vary significantly and are unique to each transaction. F5 excludes acquisition-related charges from its non-GAAP financial measures to provide a useful comparison of the company's operating results to prior periods and to its peer companies. Acquisition-related charges consist of planning, execution and integration costs incurred directly as a result of an acquisition.

Restructuring charges. F5 has incurred restructuring charges that are included in its GAAP financial statements, primarily related to workforce reductions and costs associated with exiting facility lease commitments. F5 excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.

Amortization of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Management does not believe these charges accurately reflect the performance of the company's ongoing operations, therefore, they are not considered by management in making operating decisions. However, investors should note that the use of intangible assets contributed to F5's revenues earned during the periods presented and will contribute to F5's future period revenues as well.

Facility-exit costs. In fiscal year 2019, F5 relocated its headquarters in Seattle, Washington, and recorded charges in connection with this facility exit as well as other non-recurring lease activity. These charges are not representative of ongoing costs to the business and are not expected to recur. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.

Management believes that non-GAAP net income per share provides useful supplemental information to management and investors regarding the performance of the company's core business operations and facilitates comparisons to the company's historical operating results. Although F5's management finds this non-GAAP measure to be useful in evaluating the performance of the core business, management's reliance on this measure is limited because items excluded from such measures could have a material effect on F5's earnings and earnings per share calculated in accordance with GAAP. Therefore, F5's management will use its non-GAAP earnings and earnings per share measures, in conjunction with GAAP earnings and earnings per share measures, to address these limitations when evaluating the performance of the company's core business. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP.

F5 believes that presenting its non-GAAP measures of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the company's core business and is used by management in its own evaluation of the company's performance. Investors are encouraged to look at GAAP results as the best measure of financial performance. However, while the GAAP results are more complete, the company provides investors these supplemental measures since, with reconciliation to GAAP, it may provide additional insight into the company's operational performance and financial results.

For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section in our attached Consolidated Income Statements entitled "Non-GAAP Financial Measures."

About F5

F5 (NASDAQ: FFIV) powers applications from development through their entire lifecycle, across any multi-cloud environment, so our customers—enterprise businesses, service providers, governments, and consumer brands—can deliver differentiated, high-performing, and secure digital experiences. For more information, go to f5.com. You can also follow @f5networks on Twitter or visit us on LinkedIn and Facebook for more information about F5, its partners, and technologies.

F5 is a trademark or service mark of F5 Networks, Inc., in the U.S. and other countries. All other product and company names herein may be trademarks of their respective owners.

F5 Networks, Inc.
Consolidated Balance Sheets
(unaudited, in thousands)
       
       
 

June 30,

 

September 30,

 

 

2020

 

 

 

2019

 

       
Assets      
Current assets      
Cash and cash equivalents

$

714,268

 

 

$

599,219

 

Short-term investments

 

379,303

 

 

 

373,063

 

Accounts receivable, net of allowances of $3,343 and $3,259

 

304,874

 

 

 

322,029

 

Inventories

 

28,826

 

 

 

34,401

 

Other current assets

 

238,163

 

 

 

182,874

 

Total current assets

 

1,665,434

 

 

 

1,511,586

 

       
Property and equipment, net

 

228,293

 

 

 

223,426

 

Operating lease right-of-use assets

 

316,761

 

 

 

-

 

Long-term investments

 

112,928

 

 

 

358,402

 

Deferred tax assets

 

47,919

 

 

 

27,701

 

Goodwill

 

1,858,966

 

 

 

1,065,379

 

Other assets, net

 

343,056

 

 

 

203,781

 

Total assets

$

4,573,357

 

 

$

3,390,275

 

       
Liabilities and Shareholders’ Equity      
Current liabilities      
Accounts payable

$

54,389

 

 

$

62,627

 

Accrued liabilities

 

301,038

 

 

 

235,869

 

Deferred revenue

 

888,614

 

 

 

807,030

 

Current portion of long-term debt

 

19,275

 

 

 

-

 

Total current liabilities

 

1,263,316

 

 

 

1,105,526

 

       
Deferred tax liabilities

 

444

 

 

 

313

 

Deferred revenue, long-term

 

386,438

 

 

 

391,086

 

Operating lease liabilities, long-term

 

345,577

 

 

 

-

 

Long-term debt

 

373,866

 

 

 

-

 

Other long-term liabilities

 

49,817

 

 

 

131,853

 

Total long-term liabilities

 

1,156,142

 

 

 

523,252

 

       
Commitments and contingencies      
       
Shareholders’ equity      
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding

 

-

 

 

 

-

 

Common stock, no par value; 200,000 shares authorized, 61,164 and 60,367 shares issued and outstanding

 

304,526

 

 

 

142,597

 

Accumulated other comprehensive loss

 

(18,495

)

 

 

(19,190

)

Retained earnings

 

1,867,868

 

 

 

1,638,090

 

Total shareholders' equity

 

2,153,899

 

 

 

1,761,497

 

Total liabilities and shareholders' equity

$

4,573,357

 

 

$

3,390,275

 

 

F5 Networks, Inc.

       
Consolidated Income Statements        
(unaudited, in thousands, except per share amounts)        
               
               
 

Three Months Ended

 

Nine Months Ended

 

June 30,

 

June 30,

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

               
Net revenues              
Products (1)

$

253,331

 

 

$

248,929

 

 

$

747,405

 

 

$

720,665

 

Services

 

329,921

 

 

 

314,465

 

 

 

988,601

 

 

 

931,394

 

Total

 

583,252

 

 

 

563,394

 

 

 

1,736,006

 

 

 

1,652,059

 

               
Cost of net revenues (2)(3)(4)(5)              
Products

 

57,437

 

 

 

44,336

 

 

 

152,641

 

 

 

130,293

 

Services

 

48,603

 

 

 

46,431

 

 

 

143,279

 

 

 

135,366

 

Total

 

106,040

 

 

 

90,767

 

 

 

295,920

 

 

 

265,659

 

Gross profit

 

477,212

 

 

 

472,627

 

 

 

1,440,086

 

 

 

1,386,400

 

               
Operating expenses (2)(3)(4)(5)              
Sales and marketing

 

211,808

 

 

 

195,852

 

 

 

622,799

 

 

 

531,065

 

Research and development

 

115,991

 

 

 

116,894

 

 

 

321,024

 

 

 

305,246

 

General and administrative

 

61,792

 

 

 

57,141

 

 

 

194,809

 

 

 

146,340

 

Restructuring charges

 

-

 

 

 

-

 

 

 

7,800

 

 

 

-

 

Total

 

389,591

 

 

 

369,887

 

 

 

1,146,432

 

 

 

982,651

 

               
Income from operations

 

87,621

 

 

 

102,740

 

 

 

293,654

 

 

 

403,749

 

Other income, net

 

141

 

 

 

4,722

 

 

 

5,220

 

 

 

19,251

 

Income before income taxes

 

87,762

 

 

 

107,462

 

 

 

298,874

 

 

 

423,000

 

Provision for income taxes

 

17,890

 

 

 

21,557

 

 

 

69,096

 

 

 

90,103

 

Net income

$

69,872

 

 

$

85,905

 

 

$

229,778

 

 

$

332,897

 

               
               
Net income per share - basic

$

1.15

 

 

$

1.43

 

 

$

3.78

 

 

$

5.55

 

Weighted average shares - basic

 

60,978

 

 

 

59,981

 

 

 

60,831

 

 

 

59,963

 

               
Net income per share - diluted

$

1.14

 

 

$

1.43

 

 

$

3.76

 

 

$

5.51

 

Weighted average shares - diluted

 

61,415

 

 

 

60,196

 

 

 

61,182

 

 

 

60,372

 

               
               
Non-GAAP Financial Measures              
               
Net income as reported

$

69,872

 

 

$

85,905

 

 

$

229,778

 

 

$

332,897

 

Acquisition-related write-downs of assumed deferred revenue

 

2,670

 

 

 

-

 

 

 

4,861

 

 

 

-

 

Stock-based compensation expense

 

50,868

 

 

 

40,999

 

 

 

149,751

 

 

 

119,182

 

Amortization of purchased intangible assets

 

10,676

 

 

 

3,712

 

 

 

23,884

 

 

 

7,260

 

Facility-exit costs

 

2,545

 

 

 

8,704

 

 

 

5,556

 

 

 

13,752

 

Acquisiton-related charges

 

13,443

 

 

 

30,133

 

 

 

45,162

 

 

 

33,663

 

Restructuring charges

 

-

 

 

 

-

 

 

 

7,800

 

 

 

-

 

Tax effects related to above items

 

(16,044

)

 

 

(17,919

)

 

 

(41,450

)

 

 

(37,241

)

Net income excluding acquisition-related write-downs of assumed deferred revenue, stock-based compensation expense, amortization of purchased intangible assets, facility-exit costs, acquisition-related charges, restructuring charges and non-recurring tax expenses and benefits (non-GAAP) - diluted $

134,030

    $

151,534

    $

425,342

    $

469,513

 
               
Net income per share excluding acquisition-related write-downs of assumed deferred revenue, stock-based compensation, expense amortization of purchased intangible assets, facility-exit costs, acquisition-related charges, restructuring charges and non-recurring tax expenses and benefits (non-GAAP) - diluted $

2.18

    $

2.52

    $

6.95

    $

7.78

 
               
Weighted average shares - diluted

 

61,415

 

 

 

60,196

 

 

 

61,182

 

 

 

60,372

 

               
(1) GAAP net product revenues

$

253,331

 

 

$

248,929

 

 

$

747,405

 

 

$

720,665

 

Acquisition-related write-downs of assumed deferred revenue

 

2,670

 

 

 

-

 

 

 

4,861

 

 

 

-

 

Non-GAAP net product revenues

 

256,001

 

 

 

248,929

 

 

 

752,266

 

 

 

720,665

 

GAAP net service revenues

 

329,921

 

 

 

314,465

 

 

 

988,601

 

 

 

931,394

 

Acquisition-related write-downs of assumed deferred revenue

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Non-GAAP net service revenues

 

329,921

 

 

 

314,465

 

 

 

988,601

 

 

 

931,394

 

Total non-GAAP net revenues

$

585,922

 

 

$

563,394

 

 

$

1,740,867

 

 

$

1,652,059

 

               
(2) Includes stock-based compensation expense as follows:              
Cost of net revenues

$

6,771

 

 

$

5,118

 

 

$

18,694

 

 

$

15,152

 

Sales and marketing

 

21,784

 

 

 

17,767

 

 

 

66,188

 

 

 

49,645

 

Research and development

 

13,145

 

 

 

10,037

 

 

 

36,904

 

 

 

30,598

 

General and administrative

 

9,168

 

 

 

8,077

 

 

 

27,965

 

 

 

23,787

 

 

$

50,868

 

 

$

40,999

 

 

$

149,751

 

 

$

119,182

 

               
(3) Includes amortization of purchased intangible assets as follows:              
Cost of net revenues

$

7,382

 

 

$

2,471

 

 

$

16,432

 

 

$

4,557

 

Sales and marketing

 

2,749

 

 

 

710

 

 

 

5,863

 

 

 

1,122

 

General and administrative

 

545

 

 

 

531

 

 

 

1,589

 

 

 

1,581

 

 

$

10,676

 

 

$

3,712

 

 

$

23,884

 

 

$

7,260

 

               
(4) Includes facility-exit costs as follows:              
Cost of net revenues

$

342

 

 

$

1,026

 

 

$

843

 

 

$

1,714

 

Sales and marketing

 

751

 

 

 

2,021

 

 

 

1,828

 

 

 

3,632

 

Research and development

 

776

 

 

 

3,605

 

 

 

1,929

 

 

 

5,591

 

General and administrative

 

676

 

 

 

2,052

 

 

 

956

 

 

 

2,815

 

 

$

2,545

 

 

$

8,704

 

 

$

5,556

 

 

$

13,752

 

               
(5) Includes acquisition-related charges as follows:              
Cost of net revenues

$

-

 

 

$

-

 

 

$

13

 

 

$

-

 

Sales and marketing

 

5,675

 

 

 

6,106

 

 

 

9,448

 

 

 

6,106

 

Research and development

 

547

 

 

 

16,116

 

 

 

1,327

 

 

 

16,116

 

General and administrative

 

7,221

 

 

 

7,911

 

 

 

34,374

 

 

 

11,441

 

 

$

13,443

 

 

$

30,133

 

 

$

45,162

 

 

$

33,663

 

 

F5 Networks, Inc.

Consolidated Statements of Cash Flows
(unaudited, in thousands)
       
       
 

Nine Months Ended

 

June 30,

 

 

2020

 

 

 

2019

 

       
Operating activities      
Net income

$

229,778

 

 

$

332,897

 

Adjustments to reconcile net income to net cash provided by operating activities:      
Stock-based compensation

 

149,315

 

 

 

119,182

 

Depreciation and amortization

 

69,337

 

 

 

46,645

 

Non-cash operating lease costs

 

29,731

 

 

 

-

 

Other

 

168

 

 

 

671

 

Deferred income taxes

 

4,357

 

 

 

10,171

 

Changes in operating assets and liabilities:      
Accounts receivable

 

38,024

 

 

 

(16,249

)

Inventories

 

5,575

 

 

 

(5,441

)

Other current assets

 

(33,572

)

 

 

(54,381

)

Other assets

 

(5,659

)

 

 

(8,785

)

Accounts payable and accrued liabilities

 

(1,538

)

 

 

37,932

 

Deferred revenue

 

37,934

 

 

 

79,113

 

Lease liabilities

 

(38,456

)

 

 

-

 

Net cash provided by operating activities

 

484,994

 

 

 

541,755

 

       
Investing activities      
Purchases of investments

 

(390,696

)

 

 

(210,109

)

Maturities of investments

 

322,271

 

 

 

507,804

 

Sales of investments

 

309,040

 

 

 

276,278

 

Acquisition of businesses, net of cash acquired

 

(955,574

)

 

 

(611,550

)

Purchases of property and equipment

 

(47,857

)

 

 

(83,008

)

Net cash used in investing activities

 

(762,816

)

 

 

(120,585

)

       
Financing activities      
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan  

51,999

     

45,455

 
Repurchase of common stock

 

(50,009

)

 

 

(201,045

)

Proceeds from term debt agreement

 

400,000

 

 

 

-

 

Payments on term debt agreement

 

(5,000

)

 

 

-

 

Payments for debt issuance costs

 

(3,040

)

 

 

-

 

Net cash provided by (used in) financing activities

 

393,950

 

 

 

(155,590

)

       
Net increase in cash, cash equivalents and restricted cash

 

116,128

 

 

 

265,580

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(856

)

 

 

(111

)

Cash, cash equivalents and restricted cash, beginning of period

 

602,254

 

 

 

425,894

 

Cash, cash equivalents and restricted cash, end of period

$

717,526

 

 

$

691,363

 

       
Supplemental disclosures of cash flow information      
Cash paid for amounts included in the measurement of lease liabilities

$

45,399

 

 

$

-

 

Cash paid for interest on long-term debt

$

4,330

 

 

$

-

 

Supplemental disclosures of non-cash activities      
Right-of-use assets obtained in exchange for lease obligations

$

399,203

 

 

$

-

 

Capitalized leasehold improvements paid directly by landlord

$

-

 

 

$

34,487

 

 

# # #

This press release may contain forward looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or comparable terms. These statements are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including those identified in the company's filings with the SEC.